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Title: ECONOMIC VALUE AND COST OF AUTOMATED ON-LINE POULTRY INSPECTION FOR THE U.S. BROILER INDUSTRY

Author
item Watkins, Kenton - Brad
item Lu, Yao
item Chen, Yud
item GWOZDZ, FRANK - USDA/FSIS @ARS,IND. ENGNR

Submitted to: Food Control
Publication Type: Peer Reviewed Journal
Publication Acceptance Date: 10/22/1998
Publication Date: N/A
Citation: N/A

Interpretive Summary: Inspectors from the USDA Food Safety and Inspection Service (FSIS) conduct individual on-line carcass inspection at U.S. broiler slaughter plants. With the present inspection system, broiler slaughter plants can expand their yearly production by either increasing inspection line speeds or adding additional slaughter lines. Both methods require additional FSIS inspectors. However, FSIS is presently under a hiring freeze and is unlikely to staff additional inspectors without financial support from the food industry. In addition, FSIS wants to shift inspectors away from on-line carcass inspection to other in-plant tasks such as the oversight of pathogen reduction procedures followed by slaughter plants. This study evaluates the economic value and cost of replacing visual inspection with an automated inspection technology. The objective is to determine how full adoption of automated inspection would affect both the wholesale value of industry broiler production and the cost of FSIS inspection for the period of 1997 through 2001. The results indicate that by adopting automated inspection, FSIS would receive cost savings ranging from $88 million to $155 million over the next five years and could move approximately 1,342 inspectors to other inspection tasks. The results also indicate that the U.S. broiler industry would gain from $1.55 billion to $2.57 billion in wholesale production value over the next five years if automated inspection is used in place of visual inspection and line speeds are operated at 100 birds per minute.

Technical Abstract: Visual (organoliptic) methods are employed at U.S. broiler slaughter plants to inspect individual carcasses. The USDA Food Safety and Inspection Service (FSIS) supplies inspectors to conduct this function. Under the current inspection system, slaughter plants can expand throughput capacity by either increasing inspection line speeds or adding additional slaughter lines. Both methods require additional FSIS inspectors. However, FSIS is currently under a hiring freeze and is unlikely to hire additional inspectors without financial support from the industry. Also, FSIS wants to redeploy inspectors away from on-line carcass inspection to other in-plant tasks such as verification of HACCP (Hazard Analysis and Critical Control Point) final rule implementation by slaughter plants. This study evaluates the economic value and costs of using an automated inspection technology in place of visual organoliptic inspection in the U.S. broiler industry. The objective is to determine how full adoption of automated inspection would affect both industry throughput value and FSIS inspection costs for the period of 1997 through 2001. The results indicate FSIS would receive discounted cost savings ranging from $88 million to $155 million over the next five years and could redeploy approximately 1,342 inspectors to other inspection tasks by adopting automated inspection. The results also indicate the U.S. broiler industry would gain from $1.55 billion to $2.57 billion in discounted throughput value over the next five years if automated inspection is used in place of organoliptic methods and line speeds are operated at 100 birds per minute.